Two giants with a market value exceeding 200 billion yuan join forces to invest 5.2 billion yuan in expanding production of coating films and lithium-ion battery isolation films

1. Two giants with a market value exceeding 200 billion yuan join forces to invest 5.2 billion yuan in expanding production of coating films andLithium ion battery isolation membrane

On August 3rd, lithium battery giant EVE Energy (300014) opened 4.38% higher, with a stock price of 118.99 yuan per share and a total market value of 224.7 billion yuan (with a total share capital of 1.888 billion shares). Moreover, according to calculations, the stock price of EVE Energy has risen by over 60% since mid April.

As of the close of the same day, Enjie Co., Ltd., a lithium battery separator giant, reported a price of 255.95 yuan/share, up 3.95 yuan/share or 1.57%, with a current total market value of 228.2 billion yuan.

Now, these two new energy industry chain giants with a market value exceeding 200 billion yuan have joined forces to expand their recruitment.

Joining forces with diaphragm giants to ensure raw material supply

On the evening of August 2nd, EVE Energy announced that it plans to sign a "Joint Venture Agreement" and supplementary agreement with Enjie Shares. The two parties intend to establish a joint venture company in Jingmen, which will focus on the manufacturing of lithium-ion battery isolation membranes and coating membranes. The annual production capacity of the joint venture company is 1.6 billion square meters of wet process base membranes and coating membranes that fully match its production capacity. The total planned investment for the project is 5.2 billion yuan.

Image source: Yiwei Lithium Energy Announcement

The registered capital of the joint venture company is 1.6 billion yuan, of which the designated investor of Enjie Shares subscribed 880 million yuan and holds 55% of the equity of the joint venture company; Yiwei Lithium Energy subscribed 720 million yuan and holds 45% equity of the joint venture company.

Image source: Yiwei Lithium Energy Announcement

It is worth noting that the agreement between the two parties stipulates that the wet base film produced by the joint venture company and the coating film that fully matches its production capacity should be supplied to EVE Energy and its affiliates as a priority. If there is surplus, with EVE Energy's consent, it can be sold to the outside at market price.

Yiwei Lithium Energy stated that this will be beneficial for the company to stabilize raw material supply, reduce procurement costs, align with the company's industrial layout and strategic development plan, and help enhance the company's core competitiveness and profitability.

2. Changxin Technology's UTG products have been shipped in small quantities

Recently, investors have inquired about the progress of Changxin Technology's UTG and its layout in the folding product industry chain.

Changxin Technology stated that the company has been committed to researching and developing UTG related products since 2019. Currently, the product performance and yield are in a leading position in the industry, and it has the ability to mass produce and ship in small quantities. Currently, the joint development project with well-known domestic end customers is progressing smoothly.

Changxin Technology stated that the current production capacity of the first phase of the project is 300K/M, and the planned production capacity can fully meet the future needs and time requirements of customers.

In addition, the company not only provides UTG individual processing and shipment, but also offers UTG Cover overall bonding solutions, as well as collaborative customer development of solutions for the next generation of folding products.

On July 16, 2020, Changxin Technology announced that it plans to invest 1 billion yuan to build three projects in the factory area: "high-end display modules, car curved cover plates and touch display modules, and ultra-thin flexible glass cover plates". Among them, 500 million yuan will be invested in high-end display module projects such as mobile phone display modules, NoteBook/Pad display modules, and wearable display modules. 350 million yuan will be invested in the construction of car curved cover plates and car curved touch display module projects. 150 million yuan will be invested in the construction of ultra-thin flexible glass cover plate projects.

Regarding this, Changxin Technology stated that the construction of new projects is conducive to seizing the market, increasing market size, and increasing company profits.

Changxin Technology's 2021 Q1 report shows that the company's main operating revenue was 1.554 billion yuan, a year-on-year increase of 15.19%; Net profit attributable to the parent company was 232 million yuan, an increase of 20.06% year-on-year; Deducting non recurring net profit of 217 million yuan, an increase of 17.94% year-on-year; The debt ratio is 26.26%, investment income is -1254600 yuan, financial expenses are 334200 yuan, and gross profit margin is 26.02%.